Mirror Group Newspapers Plc v Maxwell and Others
| Jurisdiction | England & Wales |
| Judgment Date | 08 July 1997 |
| Date | 08 July 1997 |
| Court | Chancery Division |
Chancery Division
Before Mr Justice Ferris
Insolvency - receivers' duties - manner of exercise of powers
Receivers appointed by the court had to bear in mind as fiduciaries that their duty was to protect, get in and realise the assets of an estate and pass them on to the creditors or beneficiaries concerned and to justify the way in which they had exercised their powers.
Mr Justice Ferris so stated in the Chancery Division in refusing an application by the receivers for further payment on account in proceedings by Mirror Group plc against Kevin Maxwell and Ian Maxwell as alleged personal representatives of the late Robert Maxwell.
Mr Charles Purle, QC, for the receivers; Mr Richard Ritchie as amicus curiae.
MR JUSTICE FERRIS said that following the death of Robert Maxwell on November 5, 1991, Mirror Group Newspapers plc initiated proceedings in December in the Queen's Bench Division against his sons Kevin and Ian as "his personal representatives".
In fact, however, no grant of representation to his estate had been obtained, nor had any such grant been obtained subsequently. In January 1992 the action was transferred to the Chancery Division, and three members of the firm of Buchler Phillips were appointed by the court as receivers.
The receivers made five reports, the latest of which was dated April 14 1997. The receivers employed a firm of solicitors, Nabarro Nathanson, to assist them in their investigations which in view of the extreme complexity of the affairs of Mr Maxwell, and of the various companies, trusts and organisations associated with him, needed to be conducted in many countries besides the United Kingdom.
The figures of assets realised, solicitors' charges and disbursements, and disbursements of and proposed remuneration for the receivers down to a date shortly before the fifth report appeared to show as net assets realised, with expected further realisations, less liabilities paid, other than receivership remuneration and legal fees paid on account and value-added tax, as a total of £1,672,500.
The figures showed solicitors' charges and disbursements as £705,283, and the claim for receivers' disbursements and proposed remuneration as £744,289, which with certain other unpaid disbursements of £179,000 brought the total to £1,628,572.
Having done his best to set out the figures objectively, his Lordship said he could not help saying that...
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